Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments And Contingencies

Commitments and Contingencies

10. Commitments and Contingencies

Lease commitments. The Company entered into a lease for property access rights and compressor space in Wyoming related to the Company's natural gas gathering system. The expense in 2016 and 2015 was $0 and $1,400, which is included in gas gathering operating costs. The Company does not have any operating leases in place at December 31, 2016.

Legal Proceedings. The Company is subject to the risk of litigation, claims and assessments that may arise in the ordinary course of its business activities, including contractual matters and regulatory proceedings. On September 30, 2016 plaintiff Eric Langan et al. filed a complaint in Maricopa County Superior Court for common law fraud under Arizona law against Arête Industries, Inc., Don and Jane Doe Prosser, and Charles and Jane Doe Davis. The action was removed to federal court on November 17, 2016, civil action number 16 – 03994 – PHX – SPL. On September 1, 2017 a judgment was entered in favor of the defendants and against plaintiffs in the case was dismissed in its entirety for lack of personal jurisdiction.

As of December 31, 2016, the Company was not subject to any pending litigation and management is not currently aware of any asserted or unasserted claims and assessments that may impact the Company's future results of operations.